Inside Franchise Business - - Contents -

What is the mar­ket­ing sup­port you can ex­pect when you in­vest in a fran­chise?

What is the mar­ket­ing sup­port you can ex­pect when you in­vest in a fran­chise?

To start with, you’ll be look­ing for a busi­ness that al­ready op­ti­mises its brand­ing. You’ll want to find a com­pany that has a good re­call among con­sumers, which un­der­stands how to use a mix of mar­ket­ing chan­nels to achieve suc­cess with its mes­sage, that in­vests in mar­ket re­search to en­sure the chan­nels and goals match the au­di­ence, and is com­mit­ted to in­vest­ing in com­mu­ni­cat­ing core mes­sages to cus­tomers. Dig­i­tal mar­ket­ing can in­clude di­rect mar­ket­ing to an email ad­dress, so­cial me­dia videos, con­tent mar­ket­ing to be dis­trib­uted on web­sites, and ad­ver­tis­ing through search en­gine mar­ket­ing and pay-per-click mar­ket­ing.

Un­less you area mar­ket­ing guru your­self, you’ ll be look­ing for a fran­chise mar­ket­ing team that has a clear un­der­stand­ing of how to use these tools to achieve re­sults, and can keep cam­paigns fresh and rel­e­vant.

Fran­chisees can ben­e­fit sig­nif­i­cantly f rom a h igh l evel o f m ar­ket­ing sup­por t that helps de­liver strong na­tional cam­paigns to in­crease brand aware­ness, and pro­vides tools and guide­lines for lo­cal area mar­ket­ing.

It is com­mon for fran­chisees to spend on pro­mot­ing their own busi­ness in the neigh­bour­hood, whether through tra­di­tional chan­nels such as let­ter­box and print ad­ver­tis­ing, through so­cial me­dia chan­nels, and through spon­sor­ship and com­mu­nity sup­port.

Fran­chisors may pro­vide tem­plates and ap­proved ma­te­rial for fran­chisees to utilise in cer­tain chan­nels, or may in­stead in­sist on an ap­proval process for mar­ket­ing col­lat­eral gen­er­ated by the fran­chisee.

Mar­ket­ing should be di­rected at ways to both at­tract and re­tain cus­tomers, and the tools and strate­gies on of­fer should be based on solid mar­ket re­search.

Of course mar­ket­ing can take the form of one-off events that en­gage new and ex­ist­ing cus­tomers. Soul Ori­gin’s barista fi­nals com­pe­ti­tion for in­stance, that took cen­tre stage in Syd­ney’s Martin Place ear­lier this year, at­tracted big crowds and en­hanced the brand’s cof­fee pro­file by em­pha­sis­ing the cre­ativ­ity and pro­fes­sion­al­ism shown by its baris­tas.


It ’s i mpor tant f or a ny f ran­chisee t o un­der­stand how the fran­chisor will han­dle o mnichan­nel m ar­ket­ing t hat takes p lace i n s tore, o nline, t hrough an app.

It ’s i mpor tant t o u nder­stand whether or not the fran­chisor will be sell­ing it s ser vices or pro­duc t s di­rec tly on­line.

If cus­tomers are buy­ing the same pro­duc t s avail­able in a fran­chised out­let, what hap­pens to the profit s from t hese s ales? I t ’s i ncreas­ingly com­mon for fran­chisors to en­sure the fran­chisee who would other wise have

Fran­chisees can ben­e­fit sig­nif­i­cantly from a high level of mar­ket­ing sup­port that helps de­liver strong na­tional cam­paigns to in­crease brand aware­ness, and pro­vides tools and guide­lines for lo­cal area


scooped the scale gets some fi­nan­cial ben­e­fit from an on­line pur­chase - this is usu­ally de­cided on a ge­o­graph­i­cal ba­sis.

Tech­nolog y is cru­cial to op­er­at­ing a busi­ness to­day, and any fran­chisee needs to be aware of all the op­por­tu­ni­ties that ex­ist in the brand to mar­ket and sell. Will the fran­chisee be al­lowed to sell on­line?

If a fran­chise op­er­ates a mo­bile app in the fast food arena, it’s likely the fran­chisee will be pay­ing to­wards the cost of the tech­nol­ogy that is de­liv­er­ing ex­tra or­ders to their busi­ness.


It’s im­por­tant that fran­chise buy­ers con­sider what the dis­clo­sure doc­u­ment and fran­chise agree­ment re­veal about mar­ket­ing and al­ter­na­tive sell­ing tech­niques, the costs en­tailed, and any re­stric­tions on trad­ing.

Fran­chisors will of course be charg­ing for the mar­ket­ing they gen­er­ate na­tion­ally: typ­i­cally a mar­ket­ing fund fee will be be­tween one and five per­cent, so it pays for the fran­chisee to have con­fi­dence in the mar­ket­ing de­ci­sions made at head of­fice.

There are spe­cific rules about the mar­ket­ing fund en­shrined in the Fran­chis­ing Code of Con­duct; the re­cent par­lia­men­tary in­quiry into the code’s ef­fec­tive­ness has raised con­cerns about how the funds are be­ing used by some fran­chisors and may re­sult in stronger rules be­ing ap­plied in the fu­ture.

For now, look for a fran­chisor who is trans­par­ent with its mar­ket­ing fund and mar­ket­ing in­for­ma­tion so you can trust the process is best tar­geted to fran­chisee suc­cess.

If cus­tomers are buy­ing

the same prod­ucts avail­able in a fran­chised out­let, what hap­pens to the prof­its from these



It’s good to re­mem­ber fran­chisees have their own roles to play in boost­ing brand promi­nence and en­sur­ing con­sis­tency and com­pli­ance across the net­work.

Stay­ing on mes­sage is im­por­tant for the brand, and the ad­van­tage of a fran­chise is that the mes­sage can be de­liv­ered to you. The mar­ket­ing team can come up with the con­cepts, de­cide the best chan­nels, and pro­vide you with the best ways to en­hance your busi­ness and boost cus­tomer loy­alty.

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